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Bitcoin(BTC) price is showing structural similarities to prior cycle transitions, according to several analysts tracking macro, liquidity, and volatility data. Recent consolidation has coincided with improving liquidity conditions and tightening price ranges. This has prompted renewed discussion around a potential multi-year expansion phase. Some projections now indicate higher long-term targets if historical patterns persist.

Bitcoin Price Fractal Mirrors 2020–2021 Cycle Setup

Analyst Crypto GEMs compares Bitcoin price behavior during the 2020–2021 cycle with the current 2024–2026 structure. In both periods, price moved from an extended corrective phase into a clearly defined accumulation zone. That earlier accumulation preceded a strong pre-bull expansion, which ultimately led to new all-time highs.

In the current structure, Bitcoin price is shown holding above prior resistance while forming higher lows, signaling a similar transition. The chart places the market after accumulation, at a stage historically associated with volatility compression. This phase has often preceded rapid expansion over a prolonged range.

Moreover, the analyst extends the fractal forward, suggesting a potential cycle peak above $200,000 by 2026. While projections remain speculative, the analysis is rooted in repeating market psychology and supply dynamics. If the fractal symmetry persists, the chart implies the market may be in an expansion phase.

US Liquidity Trend Aligns With Bitcoin Price Base

Meanwhile, analyst Ted Pillows’ chart overlays Bitcoin price with year-over-year US liquidity growth, highlighting a strong historical relationship. The liquidity indicator bottomed in November 2025, closely aligning with Bitcoin forming a local price low. Similar liquidity troughs have previously coincided with major inflection points in crypto markets.

Since that bottom, liquidity conditions have begun to stabilize, with the indicator trending upward from deeply negative levels. Although liquidity growth remains below zero, the change in direction is notable. Historically, Bitcoin responds positively once liquidity contraction begins to ease.

Ted suggests that improving liquidity supports accumulation. Bitcoin price often moves before liquidity turns fully positive, pricing in the shift ahead of time. This relationship strengthens the case that recent consolidation reflects positioning.

Volatility Compression Signals Structural Break Potential

In addition, Crypto King’s analysis focused on Bitcoin price behavior within a tightening volatility structure. Following a sharp correction, BTC price entered a narrowing range marked by lower volatility and compressed movement. Such conditions often indicate a balance between buyers and sellers rather than trend exhaustion.

The chart shows Bitcoin respecting the lower boundary of the compression zone while printing higher lows. This pattern suggests demand is absorbing sell pressure, limiting downside continuation. The breakout attempt highlights early signs of momentum shifting back toward buyers.

Crypto King noted that volatility compression phases rarely persist indefinitely. When price exits such structures, the resulting move is often decisive. A confirmed breakout would align with both the improving liquidity backdrop and the longer-term cycle fractal, reinforcing the probability of renewed expansion.

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